Morung Express News
Dimapur | May 30
Article 371A and laws governing money-lending were the main features of a legal awareness seminar conducted by the legal community of Nagaland in Dimapur on May 30.
The seminar was part of the NBA’s state-wide legal awareness campaign marking its Golden Jubilee (1969-2019) year organized in collaboration with the Nagaland State Legal Services Authority. Representatives from broad spectrum of civil society organizations in Dimapur attended the seminar.
The campaign started in January this year, covering the district headquarters with the final leg of the campaign being Dimapur before the NBA culminates the jubilee celebration in September.
“Spreading legal awareness” was the primary objective of the campaign, said NBA General Secretary V. Hukavi Zhimomi.
The resource persons included Senior Advocate Taka Masa, who articulated on the significance of Article 371A and its implications to Nagaland state and its people; and Advocate Akito Zhimomi, who highlighted the various laws governing money-lending in India.
According to Masa, the significance of Article 371A is based on the fact that it was the result of the 16 Point Agreement between the Government of India and the Naga People’s Convention. While state formation in the Union of India has been outlined in Article 3 of the Constitution, he added that Nagaland’s case was unique in the sense that it was carved out of a political agreement.
He said that the contents of Article 371A may appear simple, however, he cautioned against treating it as an all-encompassing privilege, citing instances when the special status enjoyed by the state within the framework of the Constitution of India have come often been subjected to questioning.
While it has given Nagaland special privileges, at the same time, he said that the state and the people must see to it that the privileges guaranteed are protected.
Akito Zhimomi, who is also the convenor of the NBA golden jubilee committee, highlighted the various laws governing money-lending and land related transactions in India. Considering the disputes prevailing in the state with regard to money-lending, he said that it important to know “how the law treats money lending?”
The stipulations provided in the Registration Act, 1908; Indian Stamp Act, 1899; Indian Contract Act, 1872; Usurious Loans Act and the Nagaland Money Lenders Act (NMLA), 2005 have to be followed while executing any land or money related agreement, he reminded.
Foregoing the stipulations as provided in the Acts would be tantamount to illicit transaction for which the parties involved will be liable to prosecution.
As per the Registration Act, “Any land transaction has to be registered in the sub-registrar’s office (attached to the Deputy Commissioner’s office)” and not in the magistrate’s or the Notary’s, he informed.
Under the Indian Stamp Act, a certain percentage of the market value of the land or property has to be deposited as stamp Duty. The Indian Contract Act treats any agreement found to be executed in contravention of the rules as null and void.
Further, the NMLA stipulates that no private money-lending entity can charge interest rate exceeding 3 percent of the existing banking rate (per annum).
